Key Highlights

  • Sentinelle units take static security posts, freeing police and gendarmes for law enforcement ahead of protests this Saturday.
  • A business group says more than 3,000 shops were looted, with a state support fund promised for affected firms.
  • French bonds, stocks and the euro fell Monday, while the 2027 budget targets a 5 Percent deficit.
  • Curfews covered parts of Paris and Lyon overnight, with minor-only curfews in Lille and Nice.

Military Forces Take Over Static Security Posts

France is moving part of its domestic military deployment onto the streets as the government prepares for a fresh wave of protests this weekend, officials told lawmakers on Tuesday. Interior Minister Laurent Nuñez told the National Assembly that units from the Sentinelle force, a domestic military operation launched in 2015 after terrorist attacks in Paris, are to be deployed "mainly on static security missions."

The deployment frees police and gendarmes, a military police force, to concentrate on law enforcement, Nuñez said. Prime Minister Sébastien Lecornu told parliament that authorities planned to mobilize a "massive" security presence on Saturday, with the objective of "an immediate return to order."

Curfews Mark a Calmer Night

Lecornu said earlier on Tuesday that curfews contributed to a calm night across France, even as public discontent remained high after the weekend's mass protests, looting and violent scenes. Parts of several cities were under curfew overnight, including Place de la République and Les Halles in Paris and parts of central Lyon. Lille and Nice were among the cities that imposed curfews for minors.

Lecornu said local officials can impose new curfews where the situation requires. The unrest followed weeks of demonstrations over the education system, the cost of living and other issues. Hundreds of thousands of people marched peacefully, but pockets of violence erupted, with protesters smashing shopfronts and setting Limoges Town Hall on fire.

Businesses Count the Losses

Public anger has also centered on claims that police lost control of the situation as disorder and looting escalated. Nuñez offered to resign on Monday after claiming responsibility for what unfolded. President Emmanuel Macron declined the resignation, saying law enforcement needed immediate leadership.

A vice president of a large French business group said on Tuesday that more than 3,000 shops had been looted, leaving the impression that the state cannot perform a basic duty. In the executive's view, the unrest exceeded earlier movements such as the Yellow Vests. French businesses carry one of the highest tax burdens in the euro area, the executive added, yet feel they cannot count on basic security in return.

Lecornu announced on Monday a support fund for damaged or looted businesses, along with talks with insurers to speed up assessments. A senior Europe analyst at a risk intelligence firm said the damage suggests the riots could ultimately cost more than the roughly EUR 1 billion in insured losses from the 2023 unrest. The analyst added that further violence is not inevitable, but that grievances over living costs, public services and education persist, keeping pressure on the government to show it can maintain order.

Markets and the 2027 Budget Feel the Strain

French markets came under pressure on Monday after the weekend scenes, with bonds, stocks and the euro all selling off, amid growing skepticism about the country's ability to bring its deficit down to a sustainable level.

The unrest comes amid a fiscal crisis, with government borrowing costs at their highest level in decades. Debate over the 2027 budget is fierce, with the government targeting a deficit of 5 Percent of GDP, down from 5.4 Percent. Parliament is divided with no majority, and presidential elections are set for April 2027.

Macron's Gulf Tour Draws Criticism

Criticism is mounting over Macron's decision to begin a three-day Middle East tour while France endures its most severe riots in many years. Macron said on Sunday that the trip to Kuwait, the UAE, Bahrain and Qatar aims to address high fuel prices and secure French energy supplies, while strengthening defense and security cooperation.